Potential First MFH Deal

[Yong Yoo]

After months of searching, I found a small triplex. Details below. I did walk through the property with a contractor and he did not find anything serious, but I am still considering hiring an inspector.

List Price: 140,000

Bid: 110,000 (Not on the market and seller needs to sell so thought this is reasonable)

Repair: 5,000 for the second unit

Closing cost: 9,000?(I think this was how much it was on the last property I made a bid on a few months ago which included escrow, return taxes, etc? Does this sound right?)

Financing: 75% @ 5% with 25% down

Gross Annual Income = 28,788 (two 2 bedroom and one studio)

Multiply Gross Annual Income by 80% for repairs, vacancies, etc (from Brandon's video... thanks Brandon! though I think I am being even more conservative) = 23,030

Annual Expenses = 7,300

NOI = 15,730

Annual Cashflow = 10,416

Any feedback? Did I miss calculate anything or miss something?

Thanks!

Yong